tv BBC Business Live BBC News April 16, 2019 8:30am-9:01am BST
you're watching bbc news at nine with me, joanna gosling. the headlines... paris wakes up to face the aftermath of an inferno that engulfed notre—dame. this is business live from bbc news with ben thompson it took emergency crews and sally bundock. nearly nine hours to bring the flames under control. the end of the journey gets within the past few moments, closer forjet airways. it's been confirmed that the fire the indian airline is struggling has been extinguished. to continue after being refused more the first pictures from inside, cash. as the flames took hold, live from london, that's our top story show the extent of the task ahead. on tuesday 16th april. it's feared some of the cathedral‘s priceless stained glass windows have not survived. the fire took hold with frightening speed. many were left in shock after seeing the moment the spire collapsed. crowd sings a hymn. with international flights suspended parisians try to lift jet airways‘ thousands each other‘s spirits, of passengers around the world while president macron pledges that the 850—year—old cathedral are left in limbo waiting to find in the heart of paris will be restored. out if they'll be able to fly. also in the programme firefighters say they've saved the main structure of paris‘ notre dame cathederal and donations
are already pouring in to rebuild european are already pouring in to rebuild markets looking li as european markets looking like this as they open. we'll have all the details of what you need to know that the trading day ahead. and with gender equality one of the hottest issues in business we'll be speaking to one financial services firm that's managed to move its gender pay gap so that it favours women — we'll find out just how they've done that. and with a new report suggesting amazon is flooded fake five—star reviews for products from unfamiliar brands — today we want to know do you read reviews? do you write reviews? do you take them seriously? let us know — just use the hashtag bbcbizlive hello and welcome to business live. the misery is continuing for thousands of jet airways passengers and staff. the indian airline appears to be on the brink of collapse.
its board is meeting right now to see if it can find a way to keep the carrier flying after it was refused more cash by its lenders on monday. the airline has more than 1.2 billion dollars in debt and its pilots, who haven't been paid, have been threatening to go on strike. it's also extended cancellation of international operations until thursday. our correspondent monica miller is in delhi with the latest. have you heard any more about what was discussed in the board meeting? ijust spoke to was discussed in the board meeting? i just spoke to the pilots was discussed in the board meeting? ijust spoke to the pilots union and they said at this point they are expecting to meet with the ceo later. we believe the meeting is still going on. the pilots union had threatened to strike on monday at midnight which essentially would have grounded the entire airline but when i spoke to him about 30 minutes ago he said they cannot afford to strike at this point so they are in
a waitand strike at this point so they are in a wait and see motion just like eve ryo ne a wait and see motion just like everyone else. the passengers, the board members, the investors who are not happy right now. jet airways stock has been down more three then —— more than 3% in the past 2a hours, not looking particularly good at this point. it looks like they could do with a white knight, any rumours on who could try and rescue the airline? local media say there are three contenders including eddie add airways which has already bought add airways which has already bought a stake in the airline. but it's not about them coming forward, they need an emergency loan which is what they we re an emergency loan which is what they were hoping to receive yesterday in order to keep this in operation and right now, this is how critical things are. —— etihad. they only have enough fuel to last through this afternoon so it's unclear when exactly these flights will continue, the ones that had been cancelled, the ones that had been cancelled, the passengers are absolutely angry and disappointed with the airline. we even heard from the civil
aviation minister not too long ago on twitter, saying he wants a review of this airline, in particular because of these passengers who have been facing exorbitant fees and not a whole lot of information on cancellations. tell us more about that, i know you've talked to some passengers and they've had a mixed response, those who are dry to get around the world and really not sure what to do. yes. it seems if you have a lot of resources, it's been u nfortu nate have a lot of resources, it's been unfortunate but you were able to get from point a to point b but look on twitter and social media, you will see some really impassioned pleas for people to get places for weddings, funerals, their visitors are about to run out so remember how devastating something like this can be for people who have planned a trip for their entire year and now it's being cancelled and there is no information. as of the indian government has been asked by the civil aviation minister to really look into this and try to get them
some help. all right, monica, thank you for now. the very latest on jet airways. any more news and updates, we will fill you in. let's bring you up—to—date on other business news. lufthansa has announced it made a $380m loss for the first three months of the year. the german carrier blamed higher fuel costs and rising competition for its disappointing numbers. however, it was optimistic it would return to profit in the three months tojune, because of strong demand in asia and north america. this is the story we want your response on. online retail giant amazon's website is flooded with fake five—star reviews for products from brands it's never heard of, according to uk consumer group which? it says thousands of the reviews were unverified, meaning there was no evidence the reviewer even bought the product. amazon says it's using automated technology to spot and remove false reviews. a victory for chevron over ecuador in the netherlands. that's after a dutch supreme court rejected ecuador‘s attempts to annul
decisions of an international arbitral tribunal, which had ordered ecuador to prevent enforcement of a $9.5 billionjudgment against the oil giant. ecuador is expected to appeal against the ruling. china is the world's biggest car maker and this week it's hosting the shanghai auto show. it comes amid as the first fall in sales for 20 years continues even though electric vehicles are on the up. our correspondent robin brant is there... good to see you and you've been talking to all sorts of pulses including vw. yes. the man in particular in charge of vw, the biggest foreign player in the markets here. all these executives gather in the tenth straight month ofa gather in the tenth straight month of a decline in demand for cars here, they are all looking to get
out of that. there have been stimulus efforts from the chinese government and much hope is pinned on that. electrification, a lot of talk about that, vw hopes it will unveil 70 new energy vehicle models in the next nine years or so but the company has been here for a long time, 30 plus years, particularly with a facility out west in the west of china. much controversy about that area, the chinese government admitting its detaining tens of thousands of muslim people in that pa rt of thousands of muslim people in that part of the country purely because of their religion sol part of the country purely because of their religion so i was keen to ask him about the detention camps there and what he feels about them. does vw have a production facility in for sure and we are happy to have there. are you proud to be associated with what china is doing? we are proud to create we are absolutely proud to also create workplaces in that region which we think is very useful. but this is an area you are not proud to be
associated with in terms of the chinese government is doing to regard muslims i cannotjudge them. you can't judge regard muslims i cannotjudge them. you can'tjudge it? but you know about it? i don't know what you're referring to. you don't know about china 's re—education cams for uighur muslims, it's referred to re—education camps in relation to a counter terror threat in the west of the country? you don't know about that? i the country? you don't know about that? lam the country? you don't know about that? i am not aware of that. and this is significant, china is a very important part of vw business, 40% of its deliveries come from here and what is going on in this area is highly controversial and quite frankly executives really want to talk about it. he told the bbc he did not know about it and cannot make any kind ofjudgement. robin, thank you. shares in tokyo's rising for a fourth consecutive session. blue—chip shares seeing some strong gains, that helped erase early losses. pretty volatile trade. us markets had edged lower
yesterday, after both goldman sachs and citigroup posted their numbers for the first quarter that didn't excite investors. goldman's profits came in higher than expected, largely due to cost cutting measures, revenues were disappointing. that echoes similar results from jp morgan last week. bank of america merrill lynch is due later — and more of the same is expected there. in the uk later we get the latest unemployment numbers. it's expected to stay steady — at a low of 3.9%, while wage increases have doubled in two years. more on that in a moment, but first samira has the details of what's ahead on wall street today. how much does netflix have to fear from rivals like walt disney? the video streaming service reports first quarterly earnings after the us market closes on tuesday. its results come
after disney and apple both said they were getting into the streaming video market later this year. will its recent price hikes have an impact on subscriber numbers? just some of the questions netflix investors want to have answered. also, we will hear earnings from bank of america. will they please or disappoint? this comes after goldman sachs reported earnings that disappointed wall street on monday. expect much of the focus to be on its loan growth trading revenues and expenses when it turns in its first quarter results. and united airlines reports the first quarter earnings the day after the carrier said it was cancelling all boeing 737 max flights through earlyjuly. longer than previously announced. the cancellation is the result of problems with the max's anti—stall software which has been implicated in two crashes.
jeremy stretch is head of fx strategy at cibc world markets. it will focus on corporate america right now. a lot of big companies with earnings out this week. absolutely, we've started to see some of the bigger banks reporting and that is the gateway into the meat of the earning seasons into next week. we've seen a little bit of mixed performance by the banks thus far. we have another couple of days of banks reporting and in the sense that gives us a prison to see how the us economy is performing and it's something of a mixed picture. there is parts that are missing estimates and that's why the earnings numbers yesterday particularly from citigroup and oldman sachs, failed to excite the stock market. -- prism. us banks, some would say in a better position than european banks and if us banks are struggling to make this works and the earnings aren't exciting, european ones could be even worse. you're absolutely right, the us
banks are in a much better position in terms of capitalisation and liquidity but it's also partly a function of expectation. because the us economy has been growing so strongly for a prolonged period and the banks are in relatively good health, there is a presumption that should be reflected in a very strong earnings picture and you should understand the expectation component here and that is one of the factors which we need to keep in mind. also, jeremy, i'm trying to remember the phrase, sell in may, do something in june, april, what's the story? we have a short week this week and next week because of the easter long weekend but what does that phrase. sell in may and go away and come back on sent leger day. sell in may and go away and come back on sent leger daylj sell in may and go away and come back on sent leger day. i knew it was something like that. but i'm not a horse racing man so i don't know when the sutlej a horse racing man soi when the sutlej a horse racing man so i don't know when this ledger day is. look to lock in profits from the and come back after the lull. liquidity is lower, you get increased volatility and that may be during this week because of easter week we get to see liquidity
starting to drain from the market and the relatively light next week. that risks additional volatility because there is a lack of volume in markets, if you get news then you get price spikes on the upside and downside, it can work in your favourite but correspondingly it can be very expensive indeed. sally will tell me off for mentioning the beaver, brexit but it's relatively quiet this week, no negotiations. clearly it is never far from our minds. and from the minds of investors. absolutely not. while we try and look elsewhere to look at other factors you cannot ignore the fa ct other factors you cannot ignore the fact there are negotiations ongoing so we will monitor those to see if there's any progress being made. i think generally markets assume there will be a lack of progress for the next couple of weeks at the very least. but of course, it is something that isn't far away from market thinking but i think it's going to be interesting this week at least. it gives an opportunity to focus a little more on the uk
economic data which we've almost ignored for certainly the last three months. employment, yes, very important, the cbi, important but the most important number will be retail sales on thursday to see that the barometer in terms of the high street is. it seems as though we are having a very tough time on the high street and it'll be interesting to see whether that's reflected in retail data because it may well be the case that consumers because of uncertainty are sitting on their hands and not wishing to spend on big ticket items in particular. thank you for now. jeremy will be back later and we will talk about other stories including the reviews on amazon. still come, we talk about gender equality in the business world. we talk to one representative ofa world. we talk to one representative of a firm who has made a big leap on gender imbalance. stay with us.
let's focus on the high street, we we re let's focus on the high street, we were just talking about it then. despite a bleak forecast for many shops on britain's hight street, the sports retailerjd sports is continuing to see success. the company saw a 15% rise in pretax profits over the last 12 months. well our the compa ny‘s executive chairman peter cowgill had to say this morning, at the london stock exchange. in terms of territorially. most aspects of the business firing on all cylinders. and i think the business itself has stayed very much in tune with the millennial is an generation z in terms of providing customer experience and customer focus. and you're a company that's also bought quite a few companies over the years and recently you've bought pretty green and foot asylum? do you have plans to buy more businesses, is that part of the
strategy? we don't set off with a plan, tends to be opportunity driven and everything the opportunity is correct for the development of the jd business we become engaged. obviously as you say, things are going well for you guys. when we last spoke we were talking about your preparations for brexit and how have things changed now there's been this extension? has it made any difference? not really. we've continued to have project changed meeting in terms of what the options are stop it got quite a lot of business over in europe anyway so it may well be that we will be seeking european presence in terms of distribution centres in any event. it obviously, we have to keep very conscious of any acceleration that's required is the result of brexit. so from your thoughts at the moment, given everything that's going on in the high street, do you think the uk is doing ok in terms of retail?
that's difficult to say because the number of failure is that we are seeing and i think there is a downward pressure on the property because more vacant units are appearing. but, fortunately, we presently and touch wood, are one of the winners. the boss of presently and touch wood, are one of the winners. the boss 0ij sports there. the top story there by my colleague simonjack, talking the top story there by my colleague simon jack, talking about the top story there by my colleague simonjack, talking about climate change and the potential problems for businesses because of that. your‘re watching business live — our top story — the board of jat airways meets the board ofjat airways meets right now to decide the fate of the airline. international flights are suspended still, it's got a debt burden of over $1.2 billion. when we have any more news, we will update you. now let's get the inside track on gender pay.
critics in the past have accused some organisations of sweeping the issue under the carpet, however there is now a real effort from support groups to narrow the gap between male and female pgy- one industry which has a large discrepency in salaries is financial services, which is generally seen as male dominated. last year the gap was 26.3%. however one firm going against the trend is redington. it currently has around 170 staff and reduced its pay gap from 21.6% in 2017 to 0.2% last year. joining us now is mitesh sheth, who's the ceo of redington. welcome to the programme. how did you do it? it comes down to people, leadership and culture, trying to hirea leadership and culture, trying to hire a diverse talent, making sure we promote and pay diverse talent fairly and most importantly and i think this often gets overlooked,
creating a culture or diverse talent is included and thrives. hiring diversity is like being invited to the party by creating an inclusive culture is being invited to dance. but all those elements you just told me about take a long time. they do. changing culture is the long hole, as it were, it is the dream, the holy grail of anyone running a company but you did this in one year. well, yes. i think the results we re year. well, yes. i think the results were pronounced over a year, i took over as ceo about three years ago and we put a lot of focus on creating an inclusive culture where people can speak up, challenge when they see things happening that should be improved. but really focusing right the way from the ground up, how do we hire diverse talent, junior and senior levels? we brought in senior women who wanted to come back to the workplace after having raised a family are looked after an elderly member. changing the promotion process is to really make sure we remove bias from them and that when paying and promoting
fairly, both help using technology to help us balance that bias but also the right processes around that. and one of the problems traditionally is the lack of transparency and that's why it's so difficult to clamp down on stuff like this. no one really wants to talk about pay. how do you encourage people to do that? i think the gender pay gap has been a really good initiative. firms like ours have cared a lot about tender parity and pay parity, making sure men and women doing the same rule are paid the same in terms of basic and other benefits. the gender pay gap brings the focus on distribution of your men and women in the firm, art their women in senior roles in the firm, other women in kind of different types of roles within the firm? i think that's been a really good measure and statistic and whilst we are not required to report, we found ita are not required to report, we found it a really useful way of demonstrating and showing the progress we're making and able to make through these initiatives. progress we're making and able to make through these initiativesm itfairto make through these initiativesm it fair to say this was something that you decided that she would show
real leadership on when you joined five years ago? this is actually your mission? because you are quite a small organisation compared to say a small organisation compared to say a huge investment bank are those in financial services. and it's in those big institutions that have been around for many, many years where it's quite hard to drive change? i've worked in those institutions before through my career and ijoined institutions before through my career and i joined redington institutions before through my career and ijoined redington which i really felt was a start of trying to change financial services industry and for me it was really a choice of, i think we need more responsible leadership and leaders who are willing to take those risks, who are willing to take those risks, who are willing to take those risks, who are willing to put their name behind this change, to create inclusive working environments, to create these cultures. and so that's what really appealed to me and that's why put my hand up to lead the firm when the founders stepped back and yes, it's been a really big pa rt back and yes, it's been a really big part of my change programme. it's good to see you, i wish we could talk more but there's a lot to fit into the show today. thank you for coming on. thank you. let's talk
about what's going on in paris. i'm sure we don't need to tell you. paris is waking up to the aftermath of the huge fire at the notre dame cathederal. the blaze is now under control and authorities have confirmed that the main structure is safe. president macron has promised to rebuild the cathedral, and already donations are pouring in. one of france's richest men is bernard arnault his family and his company — the luxury goods giant lvmh — will donate $225m. our correspondent hugh schofield is in paris paris waking up to assess what is left of the cathedral but we hear the stone structure is safe? yes, the stone structure is safe? yes, the structure will survive. what has gone is the roof, anything that was wooden has disappeared. the elaborate, ancient wooden structure,
what they call here, the forest, there wooden beamed structure underneath the roof has completely gone and is a tragic loss. that spire, whidden, has gone and there is damage to the north belfry, the north bell tower, where there is a wooden structure inside there as well and inside, a lot of devastation. but there is a contrast between the middle of last night and today, last night the mood was utter despair, today, we arrive and look at the massive monumental achievement which is notre dame cathedral and we can see it is basically still there and it is sta ble basically still there and it is stable and stop the flying buttress is on the outside, the stone vaults on the inside are still there which means the structure will stand and now we have this international effort to raise money which will be launched by president micron but it will cost hundreds of millions of euros and even though contributions are as you say pouring in, i don't think anyone under estimate the size
of the task that lies ahead. absolutely. for now, thank you, good to see you. as you can imagine, it's totally dominating the press. we welcome backjeremy. one of france ‘s main daily newspaper, the disaster it says. it is quite interesting what it says in the article. it talks about the terrible event that's taken place, about the terrible event that's ta ken place, the about the terrible event that's taken place, the spectacle of desolation but it says we witness the solidarity and sadness of the whole world. and some might see this asa whole world. and some might see this as a unifying moment for france? indeed. we shouldn't lose sight of the fight it's holy week, one can never say there is good timing but the timing is incredibly unfortunate in this week when the focus is in terms of the religious connotations going into a tony period, that we have seen this enormous monument, severely damaged, albeit it doesn't look anywhere near as bad as it appeared last night and that is to
be welcomed. clearly there is an opportunity now to try and bring people together, perhaps in an effort to heal some of the divisions which have been clearly an element in france. when we see something like that and as hugh schofield said, the task ahead is monumental but this is where business will get involved, one would expect and a lot of fundraising that will go on to restore something like this which is the pinnacle of the french tourism industry, let's not forget. absolutely. there have been very large donations coming in very quickly. i think there will be a further plethora of those french businesses who are very keen to be associated to try and rebuild french prestige but i think also from an international perspective we will see similar issues. jeremy thank you, good to have you on the programme. thank you for all your comments today on the question about reviews seen on amazon and elsewhere. many of you have been in touch, jazz again saying i never read reviews i always like to check it out myself and explore. good
advice. full details online, we leave you with a picture of paris as the rescue effort gets underway. good morning. temperatures on their way up through the latter part of this week. we could see 25 degrees in some spots by sunday. to date looking like a cloudy day per song. patchy outbreaks of rain per western areas. over western scotland and northern ireland, western parts of england and wales, some patchy outbreaks of rain. the exception, sunny spells for devon and cornwall, the risk of some showers. try a further east, hazy spells of sunshine although i think we could see patchy drizzle leading into western parts of the midlands and south—east england later. breezy in the north and east holding temperatures back on the east coast. temperatures are fairly similar to yesterday between 9—15d. through this evening and overnight we tend
to see the rain fizzling out, it could take its time for the north and west. some clear spells developing across england and wales. doesn't look like we see temperatures falling to four, overnight lows between 4—7d, we could see patches of mist and fog developing for south—east wales and southern england. from mid week the temperature is really going to pick up. an area of high pressure still sitting over scandinavia, the winter feeding around it in a clockwise direction, dragging up milder air from the south—east. so as we start the day on wednesday, there could be some patches of mist and fog around. they will clear and we look at a largely dry day, their amount of sunshine, some patches of cloud and a small chance of seeing the odd isolated shower. the temperature starting to pick up, a maximum of 18 degrees. still be a little bit cooler on the north sea coast. we move into thursday, the chance of mist and fog first then, that were
left and there will be another dry day, some sunshine and patchy cloud. temperatures on thursday however, starting to pick up a little bit further. we look at a maximum of 20 degrees and starting to edge up a little bit on the east coast as well. there will be a little bit of a clipping back. as we move into easter weekend, a good deal of dry and find whether to start with, temperatures picking up a bit further, highs of 24—25d possible by sunday, signs are something a little more unsettled later in the weekend.